CIR vs BPI April 17 2007

FACTS:

Sometime in 1988 the CIR sent two notices of assessment to the respondent of
their deficiency percentage and documentary stamp taxes for the year 1986 in the
total amount of P129,488,656.63.In response, respondent alleged that they were
not properly informed of the deficiency in tax assessment made against them by
the CIR which violated the rule set forth in NIRC. Whereas in the said law the
taxpayer shall be informed in writing of the law and the facts on which the
assessment is made otherwise, the assessment shall be void.

ISSUE: Whether or not respondent was properly informed of the assessment made
by the CIR?

RULING:

Accordingly, when the assessments were made pursuant to the former Section 270,
the only requirement was for the CIR to "notify" or inform the taxpayer of his
"findings." Nothing in the old law required a written statement to the taxpayer of
the law and facts on which the assessments were based. The Court cannot read into
the law what obviously was not intended by Congress. That would be judicial
legislation, nothing less. Jurisprudence, on the other hand, simply required that the
assessments contain a computation of tax liabilities, the amount the taxpayer was
to pay and a demand for payment within a prescribed period. From all the foregoing
discussions, We can now conclude that [BPI] was indeed aware of the nature and
basis of the assessments, and was given all the opportunity to contest the same but
ignored it despite the notice conspicuously written on the assessments which states
that "this ASSESSMENT becomes final and unappealable if not protested within 30
days after receipt." Counsel resorted to dilatory tactics and dangerously played with
time.

Taxes are the lifeblood of the government, for without taxes, the government can
neither exist nor endure. A principal attribute of sovereignty, the exercise of taxing
power derives its source from the very existence of the state whose social contract
with its citizens obliges it to promote public interest and common good. The theory
behind the exercise of the power to tax emanates from necessity; without taxes,
government cannot fulfill its mandate of promoting the general welfare and well-
being of the people. The petition is hereby GRANTED.